Remaining Stock Selections

We have some outstanding investments to consider for 2021.

Portfolio Five

There are stocks in this portfolio to strongly consider selling.

  • SUMO – while the SAAS / analytics sector has seen strong performance, SUMO has performed poorly.  This is a stock to strongly consider selling
  • Baozun (BZUN) – Baozun is a Chinese e-commerce enablement company.  Whether due to China market / regulatory challenges or company growth, it is time to sell this stock
  • Alibaba (BABA) – Alibaba has gone down significantly.  Unlike the other stocks on this sell list, I think Alibaba has a very large and important business for the long term, as a leading cloud platform / e-commerce platform.  They also own a valuable financial business.  Can keep or sell

There will be up to $10k – $11k to invest depending on the sales up above (there was $9k in the cash account due to our selling of Appian (APPN) earlier this year when it hit a brief peak).  This could be 5 or 6 stocks depending on the size, or a stock with a double purchase.

  • Tesla (TSLA) and / or Toyota (TM) – the best run / most profitable companies in the space are Tesla on the electric car space and Toyota on the gas / electric combination play.  While almost all other car makers in the world are betting almost solely on electric cars with the next generation moves, Toyota continues to believe in a future for gas powered vehicles which makes sense because it will be decades or longer before a reliable electric infrastructure girds the globe (think Africa / Asia, for instance)
  • Pinduoduo (PDD) – the Chinese stock market has been pummeled with regulatory changes and cold-war rhetoric.  This may also be an opportunity to buy a valuable and innovative e-commerce company at a discount
  • Rocket Mortgage (RKT) – Rocket was briefly a target of a meme-stock rally and then fell but this obscures that this is a “real” company with a 7% dividend and a solid position in the US mortgage market.  This may be a long term stock to buy at a decent down price
  • Kraft-Heinz (KHC) – Kraft-Heinz fell and had a significant write off.  The company is well run and has a new plan and solid dividend.  They provide essential food staples around the world
  • Taiwan Semiconductor Manufacturing (TSM) – this stock is an essential company in the middle of a global chip shortage but also tied to bellicose behavior from China.  May be an opportunity to purchase it at a discount
  • Nike (NKE) – the global footwear leader just released earnings and said that the global supply chain difficulties would hit revenues temporarily.  Seems like an opportunity to buy a solid company at a discount
  • Uber (UBER) – the ride sharing company had missteps in the past but has changed management and is well positioned to go on a big run of earnings as the economy opens up
  • Square (SQ) – a well run and very interesting company in the financial space that is also moving into deferred payments (essentially loans) and bitcoin

Portfolio Seven:

There are stocks in this portfolio to strongly consider selling.

  • SUMO – while the SAAS / analytics sector has seen strong performance, SUMO has performed poorly.  This is a stock to strongly consider selling
  • Baozun (BZUN) – Baozun is a Chinese e-commerce enablement company.  Whether due to China market / regulatory challenges or company growth, it is time to sell this stock
  • Alibaba (BABA) – Alibaba has gone down significantly.  Unlike the other stocks on this sell list, I think Alibaba has a very large and important business for the long term, as a leading cloud platform / e-commerce platform.  They also own a valuable financial business.  Can keep or sell

If these stocks were sold there would be funds available for 3 purchases.  Here are some ideas:

  • Nike (NKE) – the global footwear leader just released earnings and said that the global supply chain difficulties would hit revenues temporarily.  Seems like an opportunity to buy a solid company at a discount
  • Tesla (TSLA) and / or Toyota (TM) – the best run / most profitable companies in the space are Tesla on the electric car space and Toyota on the gas / electric combination play.  While almost all other car makers in the world are betting almost solely on electric cars with the next generation moves, Toyota continues to believe in a future for gas powered vehicles which makes sense because it will be decades or longer before a reliable electric infrastructure girds the globe (think Africa / Asia, for instance)
  • Uber (UBER) – the ride sharing company had missteps in the past but has changed management and is well positioned to go on a big run of earnings as the economy opens up
  • Square (SQ) – a well run and very interesting company in the financial space that is also moving into deferred payments (essentially loans) and bitcoin
  • Chevron (CX) – a fuels company that is well run and has taken over the lead company in this space from Exxon Mobil (XOM)
  • L’Oreal (LRLCY) – the French cosmetics firm has a global footprint and has really embraced digital and modern methods during the pandemic

Portfolio Eight:

There are stocks in this portfolio to strongly consider selling.

  • SUMO – while the SAAS / analytics sector has seen strong performance, SUMO has performed poorly.  This is a stock to strongly consider selling
  • Baozun (BZUN) – Baozun is a Chinese e-commerce enablement company.  Whether due to China market / regulatory challenges or company growth, it is time to sell this stock

If these stocks were sold there would be funds available for 2 purchases.  Here are some ideas:

  • Nike (NKE) – the global footwear leader just released earnings and said that the global supply chain difficulties would hit revenues temporarily.  Seems like an opportunity to buy a solid company at a discount
  • Square (SQ) – a well run and very interesting company in the financial space that is also moving into deferred payments (essentially loans) and bitcoin
  • Chevron (CX) – a fuels company that is well run and has taken over the lead company in this space from Exxon Mobil (XOM)
  • Pinduoduo (PDD) – the Chinese stock market has been pummeled with regulatory changes and cold-war rhetoric.  This may also be an opportunity to buy a valuable and innovative e-commerce company at a discount
  • L’Oreal (LRLCY) – the French cosmetics firm has a global footprint and has really embraced digital and modern methods during the pandemic
  • Uber (UBER) – the ride sharing company had missteps in the past but has changed management and is well positioned to go on a big run of earnings as the economy opens up

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